The Republican journal., 1887-12-15
Loa1, and Building Associatio s.

From the report of Bank ENai.ii.er Richards. |
The first biil li4- ;i>>ocittinn in thi> c1u;tr,
was organized llo9c than hall (, l.iu.y ago.
Since then many associations have been c>.;i}-
li>hed AMI Successfully coulugtel. ;,ir ii j. u!l-
ly within Il comparatively fc,. year hat their
real character and universal N.t'uc haNc rocCiY-
ed general public co-nitioH. TIN iir>l !. 'aN
an,! Building Associations in thi- sat. WAS or
g#nizcd at Richmond il. 1870. under special
charter. soon after a general law oA the sub
ice, WAS passed, but VA rev isei aiil cs>catil-
ly modified by the present legislature. This
law, a. it now stands, provides IN general. that
Loan and Building Associations may b. or-an-
lied in the manner provided for the orr ,lliza-
ton Of savings banks ana trust and loan 1850
Citations. The capital Of every association must
consist of the dues collected OF H. shareholders
and shall not exceed ono million dollars. This
capital Is divided lnto shares The ''lI.liiilate
Nauc' of each being TWO hundred dollars. Tie
shares are paid for in MONTH. miscellaneous of
81 per share uiti zach share rrarhe- il Ia
innate value" i. E.. $500. The shares ere ST.
ed i'll series. in such amounts and at such times
Is the members of the association may -ittr.-
mine. The funds of the association are loaned
to its shareholders or sal i>factory security. ami.
all profit and losses are divided among them
j1TD rata. To become Il share holder il is only
necessary to take cut a certificate OF a many
shares as one may ,ya,,t Init mo n.r,ou .hafi
hold more than tWent,-tive shares minors may
hold shares by trustees. fla shareholder fails
TO pay his monthly dues he is ~ ,itct to ii inc
of not more than two per cent. month oil each
dollar in arrears. and if he continues in arrears
for six consecutive months he forfeit. hi. ri flt
of membership and his account may h.. cln.r,.
Shareholders, ln.;v AT any tin.n ON :, ,unril,'.
notice Withdraw iha yofuc Of thei,. .La,... l:,.,
in 20 dom" ;hcv subject themselves ~ To tn.
loss of .urh uYrt al th. ,,rotit. -. th, by-I.uI.
may provide. ana ~ 10 The nnvmeut Of :, I,r,,-
portionatc rart Of aily uiadili>ied los. Thc>c
two provision, are for the purpose of giving
srrpatpr stability Tx li,rourl,iu,f withdrawals.
Two share, Of c1rl, Shareholder Shall he eN-
empt from attachment and execution. When
share has reached if, ultimate value The holder
shall he paiI in full and his account closed
But he may renew his connection bv investing
in other shares. II is evident that were there
no profits if would It oliirc IL % wear, FOR each
share TO reach its ultniHt, value hut cXlcricilr,
has shown that tle profits reduce thj, time 10
10 or II wears Thi, makes a profitable invest
ment
In regard to the investment of The fund, of
Loan and Builliur Associations tn. la;y pro-
vide, that every borrower >L1N he Il ~}ilr,-
holder. Each member is entitled to receive a
loan OF two hundred dollar fercvery share held
bv him.
Loans NAV be made either II, !y giyip. =.
security "A first mortgage lond on real ,>t;tc
and ple,,"ine the share, a- collateral or On
shares alone NAV he pledged for any amount
not exceclin. their i,liI m, yalla "a, every
loan i CHARGED m annual Interest of .i< nri
cent PAYABLE in monthly in>tallmeut.. The
manner Of loaninu funds III the Institution j. a.
follows Each month the directors of the As